Scaling a business is no easy feat, especially in the current post COVID-19 operating environment. While scaling a business might seem attractive, it isn’t the right option for every business. Many companies that had plans to scale prior to the pandemic have either had their plans put on hold or need to go back to the drawing board entirely. So, before you take the leap and make the massive decision to scale, Fluence Capital outlines 5 key considerations: 

1. Do you have a plan?

You’ll have probably heard the adage “if you plan to fail, you are planning to fail”. Before you make the decision to scale, it is vital to have a plan. Take a holistic look at your business and understand what strategies need to be implemented in order to facilitate your next phase of growth. It is also important to factor in and forecast potential roadblocks and bottle-necks. Take the time to create a sustainable strategy . This means reviewing funding options, examining talent issues, and evaluating systems and infrastructure. 

2. Have you identified the risks?

While it is difficult to know what the future may hold, identifying the potential risks to expansion will help protect you in the long-term. Scenario-plan potential outcomes so you can mitigate future risk as much as possible. 

3. Have you got enough cash?

Planning to scale is all very well, but having the cash and liquidity to do so, is absolutely vital. It costs money to grow which is why you need to ensure you have access to capital. Very few businesses are self funded, which means they need to access funding in order to fund their next stage of growth. Raising funds can be done via various avenues including borrowing from financial institutions, securing investment, or crowdfunding. When borrowing money to scale, you need to be cognisant of the debt you are taking on and will be required to repay, or the equity you may have to relinquish in exchange for investment. 

4. Have you got the right systems in place?

Without the right systems in place you run the risk of not scaling efficiently. Ensure you implement systems that will drive efficiencies and are adaptable and flexible enough to grow as you do. If COVID-19 has taught us anything, it is the importance of investing in technology. Automating processes will be instrumental in facilitating the expansion of your business. 

5. Have you got the right people?

People are the backbone of your organisation. Without a capable and committed team, 

Conclusion

We’re currently in a period of acute uncertainty. Before you make the decision to scale, use the current crisis to assess where you have been, where you are, and where you want to go in the future. Those who are looking to scale and succeed in the long term, will be those who reframe the challenge from ‘how do we survive and stay afloat?’, to a mindset of ‘how do we innovate?’. By having clear goals, the right vision and strong support and systems in place, you can make decisions to scale with confidence.